Suit halts illegal windfall

Lake George tree service accused of gouging after Irene

Updated 10:28 pm, Tuesday, July 23, 2013

Albany

Attorney General Eric Schneiderman has won a legal victory against a Lake George tree-removal service he said gouged customers following Hurricane Irene.

American Tree Co. can no longer try to collect outstanding bills from certain customers, Schneiderman said Tuesday, because Albany County State Supreme Court Justice Eugene Devine barred the company from attempting to collect from customers who submitted sworn statements about price gouging to the court.

Devine also imposed a $25,000 penalty on the company and required it to post a $50,000 bond that can be used for restitution to other customers who were overcharged after the 2011 storm.

More Information

The principals in American Tree Co. are Daniel Stranahan, John Stranahan and Merwin "Skip" Stranahan.

According to Schneiderman's lawsuit, American Tree charged as much as $10,000 to remove a tree. It also tacked on $1,000 "after hours" and $1,500 "emergency service call" fees, Schneiderman said.

The average charge imposed by American Tree before the storm was approximately $624 per tree, according to the attorney general's office.

Customers received bills totaling tens of thousands of dollars, which insurance companies, in many cases, refused to pay.

The attorney general identified 27 people in the Queensbury and Lake George areas who were allegedly victimized by the price-gouging.

"As New Yorkers continue to recover from the devastation of Hurricane Sandy, this case serves as a reminder that our office continues to aggressively enforce the law and has a zero tolerance policy for price gouging," Schneiderman said in a release.

The state's price gouging law bans charging an "unconscionable excessive price" for essential goods and services during an "abnormal market disruption" such as a hurricane, flood or other disaster. Tree removal is considered an essential service.